New Zealand Q3 Inflation Cools to 3.7% as Persistent Core Pressures Sustain Rate-Hike Bets

New Zealand's annual inflation rate eased to 3.7% in the third quarter of 2026 from 4.1% in the prior quarter, undershooting market expectations of 3.8% and the Reserve Bank of New Zealand's 3.9% projection. On a quarterly basis, consumer prices advanced 0.7%, below forecasts of 0.8% and down from 1.5% in the second quarter. Despite the headline deceleration, underlying core measures accelerated, with the 30% trimmed mean reaching 3.0% and the weighted median rising to 3.1%. The New Zealand dollar dipped below 0.57 against the US dollar, while markets continue to price an imminent 25-basis-point OCR hike.